DNO Makes Oil Discovery in Nabrajah # 5 Basement

As previously reported strong hydrocarbon indications were observed while drilling the fractured section of the basement interval in Nabrajah # 5 in Block 43 in Yemen. The first results from the ongoing production test of this basement interval confirm oil production of 4,000 BOPD.

Nabrajah # 2 contained gas in the basement and produced 15 million scf / day during testing. The basement oil discovery in Nabrajah # 5 is very encouraging and confirms the oil potential of the basement within the area. Basement is also producing in the neighbouring Blocks (Block 14 operated by Nexen and Block 10 operated by TotalFinaElf).

Following the test in the basement interval the overlaying Kohlan dolomites will be tested. In this interval strong hydrocarbon indications were also observed while drilling. Furthermore evaluation of electrical logs indicates the presence of hydrocarbons in a 42 meter gross interval in the Kohlan dolomites. The observations of heavier hydrocarbon components during drilling indicate that the hydrocarbons are oil. However, testing is required to confirm the nature of these hydrocarbons.

DNO is the Operator of Block 43 holding a 56.67 % working interest.